S&P assigns Regal Rexnord notes BB+

S&P said it assigned BB+ issue-level and 3 recovery ratings to Regal Rexnord Corp.'s planned senior unsecured notes, which the company will issue in multiple tranches. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 60%) recovery in default.

The senior unsecured rating is the same as S&P’s rating on the issuer.

The company plans to use the proceeds, which could range from $4.2 billion to $4.7 billion, along with proceeds from an $840 million incremental senior unsecured term loan and cash from the balance sheet, to fund its purchase of Altra Industrial Motion Corp. for about $4.95 billion and pay related transaction fees and expenses. Regal will use any proceeds exceeding $4.2 billion to redeem all or some of the company's private placement notes.

The outlook is stable.

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